1. Right Answer: D
Explanation: Strategic risks are those risks which have potential outcome of not fulfilling on strategic objectives of the organization as planned. Since the strategic objective will shape and impact the entire organization, the risk of not meeting that objective can impose a great threat on the organization.Strategic risks can be broken down into external and internal risks: External risks are those circumstances from outside the enterprise which will have a potentially damaging or helpful impact on the enterprise. These risks include sudden change of economy, industry, or regulatory conditions. Some of the external risks are predictable while others are not. For instance, a recession may be predictable and the enterprise may be able to hedge against the dangers economically; but the total market failure may not as predictable and can be much more devastating. Internal risks usually focus on the image or reputation of the enterprise. some of the risks that are involved in this are public communication, trust, and strategic agreement from stakeholders and customers.

2. Right Answer: A,B,D
Explanation: The result of risk analysis process is being communicated to relevant stakeholders. The steps that are involved in communication are: The results should be reported in terms and formats that are useful to support business decisions. Coordinate additional risk analysis activity as required by decision makers, like report rejection and scope adjustment Communicate the risk-return context clearly, which include probabilities of loss and/or gain, ranges, and confidence levels (if possible) that enable management to balance risk-return. Identify the negative impacts of events that drive response decisions as well as positive impacts of events that represent opportunities which should channel back into the strategy and objective setting process. Provide decision makers with an understanding of worst-case and most probable scenarios, due diligence exposures and significant reputation, legal or regulatory considerations.Incorrect Answers:C: Communicate the negative impacts of events that drive response decisions as well as positive impacts of events that represent opportunities which should channel back into the strategy and objective setting process, for effective communication. Only negative impacts are not considered alone.

3. Right Answer: A
Explanation: As new technologies, products and services are introduced, compliance requirements become more complex and strict; business processes and related information flows change over time. These changes can often affect the efficiency and effectiveness of controls. Formerly effective controls become inefficient, redundant or obsolete and have to be removed or replaced.Therefore, the monitoring process has to receive timely feedback from risk assessments and through key risk indicators (KRIs) to ensure an effective control life cycle.Incorrect Answers:B: Most of the time, the addition of controls results in degradation of the efficiency and profitability of a process without adding an equitable level of corresponding risk mitigation, hence better controls are adopted in place of adding more controls.C: A BIA is a discovery process meant to uncover the inner workings of any process. It helps to identify about actual procedures, shortcuts, workarounds and the types of failure that may occur. It involves determining the purpose of the process, who performs the process and its output. It also involves determining the value of the process output to the enterprise.D: Efficiency and effectiveness of controls are not affected by the changes in technology or product, so some measure should be taken.

4. Right Answer: C,D,E
Explanation: A threat is any event which have the potential to cause a loss. In other word, it is any activity that represents a possible danger. The loss or danger is directly related to one of the following: Loss of confidentiality- Someone sees a password or a company's secret formula, this is referred to as loss of confidentiality. Loss of integrity- An e-mail message is modified in transit, a virus infects a file, or someone makes unauthorized changes to a Web site is referred to as loss of integrity. Loss of availability- An e-mail server is down and no one has e-mail access, or a file server is down so data files aren't available comes under loss of availability.Threat identification is the process of creating a list of threats. This list attempts to identify all the possible threats to an organization. The list can be extensive.Threats are often sub-categorized as under: External or internal- External threats are outside the boundary of the organization. They can also be thought of as risks that are outside the control of the organization. While internal threats are within the boundary of the organization. They could be related to employees or other personnel who have access to company resources. Internal threats can be related to any hardware or software controlled by the business. Natural or man-made- Natural threats are often related to weather such as hurricanes, tornadoes, and ice storms. Natural disasters like earthquakes and tsunamis are also natural threats. A human or man-made threat is any threat which is caused by a person. Any attempt to harm resources is a man-made threat. Fire could be man-made or natural depending on how the fire is started. Intentional or accidental- An attempt to compromise confidentiality, integrity, or availability is intentional. While employee mistakes or user errors are accidental threats. A faulty application that corrupts data could also be considered accidental.

5. Right Answer: C
Explanation: When the project team needs training to be able to complete the project work it is a cost of conformance to quality.The cost of conformance to quality defines the cost of training, proper resources, and the costs the project must spend in order to ascertain the expected levels of quality the customer expects from the project. It is the capital used up throughout the project to avoid failures. It consists of two types of costs: Prevention costs: It is measured to build a quality product. It includes costs in training, document processing, equipment, and time to do it right. Appraisal costs: It is measured to assess the quality. It includes testing, destructive testing loss, and inspections.Incorrect Answers:A: Benchmarking compares any two items, such as materials, vendors, or resources.B: Cost-benefit analysis is the study of the benefits in relation to the costs to receive the benefits of a decision, a project, or other investment.D: Team development describes activities the project manager uses to create a more cohesive and responsive project team.